How to avail input tax credit of IGST paid through manual TR-6 Challans as duty on debonding of capital goods in STPI/ SEZ

[Shivam Agrawal]

Dear Members,

Please guide me on how to avail input tax credit of IGST paid through manual TR-6 Challans as duty on debonding of capital goods in STPI/ SEZ which were imported duty free originally. I am not sure whether TR-6 is a document prescribed for payment of customs duty and can be considered a valid document as per Rule 36 of CGST Rules.

I have came across Customs Circular no. 16/2023 (https://taxinformation.cbic.gov.in/view-pdf/1003163/ENG/Circulars) relating to similar incremental IGST payment scenario and availment of ITC/ Refund.

I request you to please elaborate the detailed procedure to follow to get the BOE reassessed and get the BOE data flowing from ICEGATE or ICES to GSTN portal and how to make the challan payment.

Thanks and Regards,

CA. Shivam Agrawal

[email protected]

[Shilpi Jain]

Apply for re-assessment of the BoE. In all probabilities it will not be accepted by the customs officer.

Make an intimation to the GST officer in this regard asking practical way out to this.

No reply would be recieved generally. In such a scenario proceed to take the itc as per TR-6 challan and make an intimation to the GST officer in this regard that you are proceeding to take itc 

[Shilpi Jain]

Note that ITC cannot be denied merely on the ground that the portal/law has not provided any mechanism to avail ITC paid through TR-6. Many HC have given favourable decisions in cases where no procedure is available to avail ITC. Like in case of CVD SAD paid after GST was introduced, refunds were sanctioned.

[Shivam Agrawal]

Thank you Shilpi Ji for your guidance. I also agree with the view that ITC cannot be restricted even if the IGST payment on Bill of Entry is not reflecting in GSTR-2B. Trade and Industry has to make representation on this to CBIC through various trade forums. 

AI Summary

Input tax credit via TR-6 challans: claim ITC, notify GST officer and rely on precedent despite portal limitations. Seek reassessment of the Bill of Entry to record IGST paid, but if reassessment or BOE data flow to GSTN fails, formally notify the GST officer and proceed to claim input tax credit on the basis of the manual TR-6 challan; reliance may be placed on precedents allowing ITC despite absence of a portal mechanism, and trade representations to authorities are advisable.